The Hong Kong Exchanges and Clearing Market (HKEX) has reached out to the Australian Securities Exchange (ASX) for a collaboration on implementing Blockchain technology in their workflow processes.
The ASX was the first exchange to use Blockchain back in December 2017, when they partnered up with Digital Assets to help them replace their traditional processing system for equity transactions.
For HKEX chief executive Charles Li, both exchanges are “developing a much closer dialogue to understand what they’re doing, and sharing information…for sharing vendor relationships.” Specifically, HKEX will be using blockchain for lending, stock borrowing, and some over-the-counter trades. Ultimately, they envision their use of blockchain to be something “where nobody wants to spend the money to do anything, but where the exchange can come out and say let’s use this cheap technology to do something that doesn’t affect the central order book.”
This is not the first time that HKEX has seriously considered working with blockchain technology, but its fast development had been a challenge for them to come up with a blockchain-based private market that could help small companies get funding. “Unfortunately, this space changes so much that the vendors we chose… eventually evolved such that they’re not really useful to us, and we’re not interested in doing it ourselves.”